LCO 1 of 9 General Assembly Substitute Bill No. 5470 February Session, 2024 AN ACT CONCERNING TRANSPORTATION NETWORK COMPANIES AND THIRD-PARTY DELIVERY COMPANIES . Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (b) of section 13b-118 of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective July 1, 2 2024): 3 (b) (1) A transportation network company may charge a fare to a 4 transportation network company rider for a prearranged ride provided 5 the company discloses such fare to the rider through its digital network: 6 (A) The fare or fare calculation method; (B) the applicable rates being 7 charged; and (C) an option to receive an estimated fare before a 8 prearranged ride. 9 (2) [Within a reasonable period of time] Not later than five minutes 10 following the completion of a prearranged ride, a transportation 11 network company shall transmit, through its digital network, an initial 12 electronic receipt to the transportation network company rider on behalf 13 of the transportation network company driver that [lists] includes: (A) 14 The date and time of the prearranged ride; (B) the origin and destination 15 of the prearranged ride; [(B)] (C) the total time and distance of the 16 prearranged ride; [and (C)] (D) the first name of the transportation 17 network company driver; (E) an itemization of the total fare paid, if any; 18 and (F) the compensation paid to such driver for the prearranged ride, 19 Substitute Bill No. 5470 LCO 2 of 9 including all relevant factors used by the transportation network 20 company to calculate such compensation. Not later than twenty-four 21 hours following the completion of a prearranged ride, a transportation 22 network company shall transmit to such rider a finalized electronic 23 receipt that includes the information specified in subparagraphs (A) to 24 (F), inclusive, of this subdivision. 25 (3) No transportation network company driver shall solicit or accept 26 cash payments for fares from transportation network company riders. 27 Any payment for a prearranged ride shall be made only through the 28 transportation network company's digital network. 29 (4) (A) For the purposes of this subdivision, "dynamic pricing" means 30 offering a prearranged ride at a price that changes according to the 31 demand for prearranged rides and availability of transportation 32 network company drivers. 33 (B) If a transportation network company elects to implement 34 dynamic pricing, the transportation network company, through its 35 digital network, shall: (i) Provide notice to a potential transportation 36 network company rider that dynamic pricing is in effect before a request 37 for a prearranged ride may be submitted; (ii) provide a fare estimator 38 that enables the potential rider to estimate the cost of such prearranged 39 ride under dynamic pricing; and (iii) include a feature that requires the 40 potential rider to confirm that he or she understands that dynamic 41 pricing will be applied to the cost of such prearranged ride. 42 (C) No transportation network company shall increase the price of a 43 prearranged ride to more than two and one-half times the usual price 44 charged for such prearranged ride in an area which is the subject of any 45 disaster emergency declaration issued by the Governor pursuant to 46 chapter 517, any transportation emergency declaration issued by the 47 Governor pursuant to section 3-6b or any major disaster or emergency 48 declaration issued by the President of the United States. 49 Sec. 2. (NEW) (Effective July 1, 2024) (a) Not later than five minutes 50 following the completion of a prearranged ride, a transportation 51 Substitute Bill No. 5470 LCO 3 of 9 network company shall transmit, through its digital network, an initial 52 electronic receipt to the transportation network company driver that 53 includes, but need not be limited to: (1) The total time and distance of 54 the prearranged ride, (2) the total distance driven by the driver 55 beginning when the driver accepted the request from the rider through 56 the digital network and ending when the rider entered the 57 transportation network company vehicle, (3) the total fare charged to 58 the rider, (4) the driver's rate of pay, including, but not limited to, the 59 rate per minute, rate per mile, percentage of rider's fare received by the 60 driver and any dynamic pricing, as defined in subdivision (4) of 61 subsection (b) of section 13b-118 of the general statutes, as amended by 62 this act, that was applied to the cost of the prearranged ride, (5) any tips 63 or gratuities paid to the driver, (6) the gross payment to the driver, (7) 64 the net payment to the driver after the deduction of any fees, tolls, 65 surcharges, lease fees or other charges, and (8) an itemization of any 66 such deductions. Not later than twenty-four hours following the 67 completion of a prearranged ride, a transportation network company 68 shall transmit to such driver a finalized electronic receipt that includes 69 the information specified in subdivisions (1) to (8), inclusive, of this 70 subsection. 71 (b) A transportation network company shall maintain a digital copy 72 of each initial and finalized electronic receipt transmitted pursuant to 73 subsection (a) of this section on its digital network and make such 74 receipts available for downloading by the transportation network 75 company driver for a period of not less than three years from the date 76 of the prearranged ride. 77 (c) A transportation network company shall provide, through its 78 digital network, a weekly summary to the transportation network 79 company driver regarding the prearranged rides completed by such 80 driver during the previous week. Such summary shall include, but need 81 not be limited to: (1) The total time and distance of the prearranged rides 82 completed by the driver during such week, (2) the total amount of fares 83 charged to transportation network company riders during such week as 84 a result of such prearranged rides, (3) the total amount of tips or 85 Substitute Bill No. 5470 LCO 4 of 9 gratuities paid to the diver during such week, (4) the driver's gross 86 payment received during such week, itemized by (A) rate per minute, 87 including the average rate across all completed prearranged rides, (B) 88 rate per mile, including the average rate across all completed 89 prearranged rides, and (C) any other method used to calculate pay, 90 including, but not limited to, base pay, percentage of the rider's fare or 91 any dynamic pricing that was applied to the cost of the prearranged 92 ride, (5) the driver's net payment during such week after the deduction 93 of any fees, tolls, surcharges, lease fees or other charges, and (6) an 94 itemization of any such deductions. 95 Sec. 3. Section 13b-116 of the general statutes is repealed and the 96 following is substituted in lieu thereof (Effective July 1, 2024): 97 As used in this section, [and] sections 13b-117 to 13b-120, inclusive, 98 and section 2 of this act: 99 (1) "Transportation network company" means a company, 100 corporation, partnership, trust, association, sole proprietorship or 101 similar organization that operates in this state and uses a digital network 102 to connect transportation network company riders to transportation 103 network company drivers to provide prearranged rides. 104 "Transportation network company" does not include the holder of a 105 certificate of public convenience and necessity issued under the 106 provisions of section 13b-97 to operate a taxicab or the holder of a permit 107 issued under the provision of section 13b-103 to operate a motor vehicle 108 in livery service. 109 (2) "Transportation network company driver" or "driver" means an 110 individual who [is not an employee of a transportation network 111 company, but who] uses a transportation network company vehicle to 112 provide prearranged rides. 113 (3) "Transportation network company rider" or "rider" means an 114 individual or individuals who use a digital network to connect with a 115 transportation network company driver to receive a prearranged ride 116 between points chosen by the individual or individuals. 117 Substitute Bill No. 5470 LCO 5 of 9 (4) "Potential transportation network company rider" or "potential 118 rider" means an individual or individuals who use a digital network to 119 request a prearranged ride but have not entered the transportation 120 network company vehicle. 121 (5) "Digital network" means any online-enabled application, web site 122 or system offered or utilized by a transportation network company that 123 enables the provision of prearranged rides. 124 (6) "Prearranged ride" means transport by a transportation network 125 company driver of a transportation network company rider, (A) 126 beginning when the driver accepts a request from the rider through a 127 digital network, (B) continuing while the driver transports the rider, and 128 (C) ending when the last rider exits the transportation network 129 company vehicle. 130 (7) "Transportation network company vehicle" means a motor vehicle 131 as described in subsection (h) of section 13b-119 that is owned, leased or 132 otherwise used by a transportation network company driver when the 133 driver is connected to a digital network or is engaged in the provision 134 of a prearranged ride. 135 Sec. 4. (NEW) (Effective July 1, 2024) (a) As used in this section: 136 (1) "Third-party delivery company" means a company, corporation, 137 partnership, trust, association, sole proprietorship or similar 138 organization that operates in this state and uses a digital network to 139 connect customers to third-party delivery company drivers to provide 140 prearranged deliveries. 141 (2) "Third-party delivery company driver" or "driver" means an 142 individual who uses the digital network of a third-party delivery 143 company to provide prearranged deliveries. 144 (3) "Prearranged delivery" means the delivery by a third-party 145 delivery company driver of groceries, food, beverages, commercial 146 goods or other items prepared by another entity, or food and beverages 147 Substitute Bill No. 5470 LCO 6 of 9 from not fewer than ten separately owned and operated food service 148 establishments, (A) beginning when the driver accepts a request from 149 the customer through a digital network, (B) continuing while the driver 150 transports the groceries, food, beverages, commercial goods or other 151 items, and (C) ending when the driver delivers the groceries, food, 152 beverages, commercial goods or other items to the location requested by 153 the customer. 154 (4) "Food service establishment" has the same meaning as provided 155 in section 21a-62b of the general statutes. 156 (5) "Digital network" means any online-enabled application, web site 157 or system offered or utilized by a third-party delivery company that 158 enables the provision of prearranged deliveries. 159 (6) "Dynamic pricing" means offering a prearranged delivery at a 160 price that changes according to the demand for prearranged deliveries 161 and availability of third-party delivery company drivers. 162 (b) Not later than five minutes following the completion of a 163 prearranged delivery, a third-party delivery company shall transmit, 164 through its digital network, an initial electronic receipt to the customer 165 on behalf of the third-party delivery company driver that includes an 166 estimation of: (1) The date and time of the prearranged delivery, (2) the 167 origin and destination of the prearranged delivery, (3) the total time and 168 distance of the prearranged delivery, (4) the first name of the third-party 169 delivery company driver, (5) an itemization of the total cost of such 170 prearranged delivery, and (6) the compensation paid to such driver for 171 the prearranged delivery, including all relevant factors used by the 172 third-party delivery company to calculate such compensation. Not later 173 than twenty-four hours following the completion of a prearranged 174 delivery, a third-party delivery company shall transmit to such 175 customer a finalized electronic receipt that includes the information 176 specified in subdivisions (1) to (6), inclusive, of this subsection. 177 (c) Not later than five minutes following the completion of a 178 prearranged delivery, a third-party delivery company shall transmit, 179 Substitute Bill No. 5470 LCO 7 of 9 through its digital network, an initial electronic receipt to the third-party 180 delivery company driver that includes, but need not be limited to: (1) 181 The total time and distance of the prearranged delivery, (2) the total 182 distance driven by the driver beginning when the driver accepted the 183 request from the customer through the digital network and ending 184 when the driver picked up the groceries, food, beverages, commercial 185 goods or other items to be delivered, (3) the total cost of such 186 prearranged delivery charged to the customer, (4) the driver's rate of 187 pay, including, but not limited to, the rate per minute, rate per mile, 188 percentage of the cost of the prearranged delivery received by the driver 189 and any dynamic pricing that was applied to the cost of the prearranged 190 delivery, (5) any tips or gratuities paid to the driver, (6) the gross 191 payment to the driver, (7) the net payment to the driver after the 192 deduction of any fees, tolls, surcharges, lease fees or other charges, and 193 (8) an itemization of any such deductions. Not later than twenty-four 194 hours following the completion of a prearranged delivery, a third-party 195 delivery company shall transmit a finalized electronic receipt to such 196 driver with the information specified in subdivisions (1) to (8), inclusive, 197 of this subsection. 198 (d) A third-party delivery company shall maintain a digital copy of 199 each initial and finalized electronic receipt transmitted pursuant to 200 subsection (c) of this section on its digital network and make such 201 receipts available for downloading by the third-party delivery company 202 driver for a period of not less than three years from the date of the 203 prearranged delivery. 204 (e) A third-party delivery company shall provide, through its digital 205 network, a weekly summary to the third-party delivery company driver 206 regarding the prearranged deliveries completed by such driver during 207 the previous week. Such summary shall include, but need not be limited 208 to: (1) The total time and distance of the prearranged deliveries 209 completed by the driver during such week, (2) the total amount of fares 210 charged to customers during such week as a result of such prearranged 211 deliveries, (3) the total amount of tips or gratuities paid to the driver 212 during such week, (4) the driver's gross payment received during such 213 Substitute Bill No. 5470 LCO 8 of 9 week, itemized by (A) rate per minute, including the average rate across 214 all completed prearranged deliveries, (B) rate per mile, including the 215 average rate across all completed prearranged deliveries, and (C) any 216 other method used to calculate pay, including, but not limited to, base 217 pay, the percentage of the cost of the prearranged delivery received by 218 the driver or any dynamic pricing that was applied to the cost of the 219 prearranged delivery, (5) the driver's net payment during such week 220 after the deduction of any fees, tolls, surcharges, lease fees or other 221 charges, and (6) an itemization of any such deductions. 222 Sec. 5. (Effective from passage) (a) For the purposes of this section, 223 "transportation network company driver" and "prearranged ride" have 224 the same meanings as provided in section 13b-116 of the general 225 statutes, as amended by this act. 226 (b) The Commissioner of Transportation shall negotiate and enter 227 into a memorandum of understanding with the proper authorities of the 228 states of New York, Massachusetts, Rhode Island and New Jersey to 229 establish a regional approach to permitting a transportation network 230 company driver who possesses a motor vehicle operator's license in one 231 state to provide a prearranged ride that originates in a different state. 232 Not later than January 1, 2025, the commissioner shall report, in 233 accordance with the provisions of section 11-4a of the general statutes, 234 to the joint standing committee of the General Assembly having 235 cognizance of matters relating to transportation on the results of such 236 negotiations and any legislation needed to implement such regional 237 approach. 238 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2024 13b-118(b) Sec. 2 July 1, 2024 New section Sec. 3 July 1, 2024 13b-116 Sec. 4 July 1, 2024 New section Sec. 5 from passage New section Substitute Bill No. 5470 LCO 9 of 9 Statement of Legislative Commissioners: In Sections 2(b) and 4(d) "not less than" was added before "three years" for conformity with standard drafting conventions. LAB Joint Favorable Subst.